Namyue Holdings Limited released its audited results for the year ended 31 December 2025, reporting a markedly reduced net loss alongside a significant uplift in subcontracted production volumes.
Financial Performance • Revenue declined 20.0% to HK$71.26 million, reflecting softer sales of cowhides (down 47.1% to HK$25.79 million) that outweighed a 20.4% rise in subcontracting revenue to HK$45.48 million. • Gross profit improved to HK$3.27 million (2024: HK$0.39 million), raising gross margin to 4.6% from 0.4% on tighter cost controls and higher-margin processing work. • Loss for the year narrowed to HK$14.23 million from HK$33.77 million, a 57.9% improvement. Basic loss per share reduced to HK2.65 cents (2024: HK6.28 cents). • Operating cost discipline saw selling and distribution expenses fall 56.3% to HK$0.61 million, while administrative expenses dropped 21.9% to HK$19.20 million. • A HK$12.21 million reversal of inventory provisions and a HK$2.82 million reversal of trade-receivable impairments supported the earnings improvement.
Balance Sheet and Liquidity • Total assets contracted 15.8% year on year to HK$81.77 million. Net assets fell to HK$6.30 million, driving net asset value per share down to HK$0.01 (2024: HK$0.04). • The debt-to-asset ratio rose to 92.3% (2024: 80.4%) as interest-bearing bank borrowings climbed to HK$19.26 million. • Cash and bank balances reached HK$6.67 million, while pledged deposits stood at HK$2.74 million. The current ratio weakened to 0.49x (2024: 0.67x); quick ratio edged up to 0.37x (2024: 0.35x). • The auditor drew attention to material uncertainty regarding going-concern capability. Mitigating measures include a RMB30 million financial-support facility from the immediate holding company, renewal of RMB35 million in pledged bank facilities through April 2027, and continued cost-containment initiatives.
Operational Highlights • Subcontracted leather processing volume surged 80.3% to 34.19 million square feet, underpinned by equipment upgrades and deeper client relationships. • Sales volume of cowhides fell 34.8% to 3.49 million square feet amid subdued market demand. • The Group intensified energy-saving actions—installing rooftop solar panels, optimising steam and water systems, and reducing waste—contributing to lower unit costs and an improved gross margin.
Capital Expenditure & Pledges • FY2025 capex totalled HK$4.86 million, directed mainly to machinery upgrades and plant renovations. • Buildings (HK$32.25 million net book value), right-of-use assets (HK$10.24 million) and pledged deposits (HK$2.74 million) secure the Group’s banking facilities.
Outlook Management plans to leverage the strengthened subcontracting platform, expand into dyeing and finishing services, further release newly added capacity, and maintain stringent cost and risk controls. Despite external headwinds, the focus remains on improving profitability and liquidity while pursuing selective growth opportunities.
No dividend was declared for 2025. The Company’s annual general meeting is scheduled for 18 June 2026, with the register of members closed from 12–18 June 2026.